© 24/7 Wall St. Most retail investors have never had a realistic path into SpaceX. That is the specific problem ERShares Private-Public Crossover ETF (NYSEARCA:XOVR) is built to solve, and it is the reason the fund pulled in over $470 million in investments since December 8, 2025 as retail investors rushed to get a piece of the anticipated SpaceX IPO. What XOVR Is Actually Trying to Do The fund combines two distinct sleeves. The larger portion tracks a proprietary Entrepreneur 30 Total Return Index, a concentrated basket of high-growth public companies. The smaller sleeve holds pre-IPO private equity positions through special purpose vehicles (SPVs), giving non-accredited investors access to companies that traditionally require venture capital relationships or accredited investor status to reach. The sector breakdown reflects a pure growth orientation. Information Technology represents 31.5% of the fund, followed by Healthcare at 14.7% and Communication Services at 14.4%. There is zero exposure to Consumer Staples, Utilities, Energy, or Real Estate. This is a concentrated bet on innovation-stage companies, not a diversified all-weather fund. The private sleeve is currently dominated by one name. SpaceX exposure stood at approximately $205 million as of March 25, 2026, representing roughly 10% of the fund via an SPV structure. Anduril Holdings and Klarna round out the private holdings at 0.2% and 0.1% respectively. The Public Sleeve Tells a Different Story Strip out the SpaceX narrative and what remains is a fairly conventional growth ETF. The top public holdings are concentrated in high-multiple tech names: Nvidia at 6%, Meta Platforms at 5%, Palantir at 4%, and Arista Networks at 4%. AppLovin, Rocket Lab, DoorDash, Robinhood, and Tesla all hold positions between 3% and 3.5%. These are names investors can access more cheaply through index ETFs. The return engine is straightforward: capital appreciation from high-growth public equities, supplemented by the optionality of a private equity position that could reprice sharply if SpaceX goes public. The fund pays no dividend yield (0%) and charges 75 basis points in annual expenses. Does the Strategy Deliver? The performance record raises serious questions. XOVR is down 16% year-to-date through March 31, 2026, compared to a 6% decline for the Invesco QQQ Trust (NASDAQ:QQQ) over the same period. Over five years, XOVR has returned just 8% while QQQ gained 78% across the same window. That gap is the core problem for any investor evaluating this fund on total return grounds. Morningstar analyst Jeffrey Ptak published a pointed critique in February 2026, finding that XOVR lost 4.6% annually since December 2024 despite SpaceX valuation increases, and raised concerns about the manager’s accounting of the SpaceX stake, illiquidity risk from concentration, and misleading marketing tactics. The Wall Street Journal’s Jason Zweig flagged a related issue: SpaceX shares rarely trade, making true valuation difficult, and continuous ETF trading masks infrequent price discovery in the underlying asset. Three Tradeoffs Worth Understanding Valuation opacity on the private sleeve: The SpaceX position is held through an SPV, and because SpaceX shares trade infrequently, the fund’s stated NAV may not reflect what investors would actually receive in a liquidation. This makes the ETF’s price partially a function of manager judgment, not market clearing. Concentration masquerading as diversification: With 35 holdings shown in the portfolio and a 66% annual portfolio turnover rate, the fund appears active and diversified. But the SpaceX position alone drives the fund’s identity and most of its media coverage. The public equity sleeve largely duplicates what a standard growth ETF already provides. Elevated volatility amplifies the risk profile: The VIX recently crossed 30, roughly doubling in a single month, putting it in the top 5% of volatility readings over the past year. A fund concentrated in high-beta growth names with an illiquid private anchor is not built for this environment. The fund’s appeal is narrowly defined: pre-IPO SpaceX exposure for growth-oriented investors who accept that the public equity sleeve is unlikely to outpace a simple Nasdaq index ETF on its own merits. About the Author